Bao Junyi interrupted, "Mr. Andrew Canevi, if we can reach a cooperation, it will benefit both parties. Your company will receive a large order and its stock price will soar. Mercedes-Benz is already a case in point."
"Besides, the area where I purchased the product is in Hong Kong, so it shouldn't be on the prohibited sales list."
Bao Junyi knew what these foreigners were thinking. They simply wanted to raise the price of steel equipment through this kind of suppression, which had been proven to be effective at the negotiating table with other developing countries.
Bao Junyi continued, "We buy steel from large steel mills that primarily produce steel for automobiles and construction. With Hong Kong's booming economy and real estate, there's a large demand for steel. We're concerned about the high transportation costs associated with importing steel."
"As for Miracle Auto, we currently sell 5,000 cars per month. While our scale isn't as large as Ford's, there's still a significant gap. However, we'll need a lot of steel for future factory expansion. Hong Kong is one of the world's most important trading ports, radiating to the Southeast Asian market. Therefore, purchasing a steel mill is inevitable."
Andrew Kanevi pondered, "Although the Xiangjiang area is not included in the steel plant equipment control area, if it is sold, it will be tracked by COCOM. After all, Xiangjiang is close to Longguo."
"Mr. Andrew Kanevi, the US President has visited China in the past two years, and bilateral relations have been close. Isn't it not like it was decades ago?"
"In the past two years, trade between Longguo and the United States has become increasingly frequent. The United States doesn't sell a lot of equipment, but there are countries in Europe that sell it, right?"
In the mid-1970s, the United States relaxed its policy toward China, the frequency of exchanges between the two countries increased, and trade was also developed. This period lasted only a few short years.
Andrew Canevi thought for a moment before saying, "A complete set of production equipment for a large steel plant is very expensive. Moreover, if a Hong Kong company were to start one, would it be able to afford it? This kind of project is generally undertaken by the government, and very few are privately run."
"I am optimistic about the future market in Hong Kong and Longguo. After all, the Chinese population is there, and future housing construction will be inseparable from steel. It shouldn't take many years to recoup the investment."
"Actually, if you buy a large quantity of steel, I can offer you the lowest wholesale price and become an agent for US Steel in the Asian market. What do you think?"
"Mr. Andrew Canevye, if I were importing steel, I wouldn't have to go so far. After all, shipping it from the United States to Hong Kong across the Pacific Ocean is too expensive. I'd rather buy steel from Sakura Country or the Bear Country, right?"
"I didn't realize that Mr. Bao is a shrewd businessman."
"Actually, when I was studying at MIT in the United States, besides being interested in mechanical manufacturing, I also loved reading books related to industrial development and international trade in various countries."
"No wonder, then I won't say any more nonsense."
Andrew Kanevi continued, "A complete set of equipment for a large steel plant costs $4 billion. As for the special steel smelting equipment, we still can't sell it to you."
"Mr. Andrew Canevye, as far as I know, the current market price for a complete set of steel plant equipment is only around $3 billion. Your price is far from the market price."
"Mr. Bao, you're looking for large-scale, first-class steel mill production equipment. You can't base your price on international market prices."
"This price is too high and not in the company's interest. If Mr. Andru thinks we can only buy from you, then steel mills in Frankfurt, Eagle Country, Germany, and other countries should welcome us to negotiate under the current circumstances."
"Really? Do they dare to sell it to you without the consent of the United States?" Andrew Canevi said arrogantly and confidently.
"Really? If that doesn't work, we can buy from the Bear Country. Their economy has been tough these past two years, so they should be happy to sell."
Andrew Kanevi fell silent. Miracle Group purchased steel plant equipment from more than one company. He had just said this to scare Bao Junyi. Now it seemed that he was an expert in the business.
Bao Junyi continued, "Mr. Andrew Canevye, the oil crisis has plunged the U.S. economy into stagflation, severely impacting the auto industry. Steel demand has been declining for six months, factory orders have plummeted, and heavy industry revenue has fallen sharply."
"Give me a real price. If you take my order, your profit should be close to one billion US dollars. In the current environment, it will be a great boost to morale and stock price, right?"
Andrew Kanevi pondered for a moment before saying, "Sure. A complete set of production line equipment for a large steel plant costs $3.8 billion. That's the actual price. We'll just make some hard-earned money."
"A complete set of first-class production equipment for a large steel plant costs $3.5 billion. At the same time, special steel smelting equipment must also be purchased."
"This is our final offer. If it doesn't work, we'll go to Europe." Bao Junyi said impatiently.
Bao Junyi didn't want to drag it out with him. After all, the US Steel Company was also eager for this order to alleviate the company's decline.
"Then wait a moment, we need to have a meeting to discuss this."
Bao Junyi also learned through negotiations that the steel company was affected by the oil crisis and was now laying off employees and cutting costs. Given their arrogant character, they would not bargain here and would have turned the table and left long ago.
Half an hour later.
Andrew Canevye said, "The large steel mill equipment is worth $3.75 billion. As for the special steel smelting equipment, it can only be sold second-hand, 90% new, and it is also from a steel mill that just closed down last year. It is medium-sized, but it costs $700 million."
"No, the price is still too high. Besides, second-hand equipment also costs 700 million?"
The next negotiations were led by Michael and a group of Miracle executives.
It lasted until three days later.
Bao Junyi and Andrew Canevi signed a contract on the acquisition of a large steel plant and equipment for smelting special steel.
In the end, Miracle Group purchased the latest first-class steel plant equipment, special steel smelting equipment and technology from US Steel Corporation for a total of US$4 billion, paying US$3.6 billion and US$400 million respectively.
In addition, a down payment of 30% will be paid to the steel company within one month. Meanwhile, the balance will be paid only after the installation test is passed and mass production is normal.
And provide engineers with installation and operation training to ensure the normal operation of the new steel plant, but Miracle Group needs to pay salaries.
However, there was no way around it. In the 1970s, Hong Kong had basically no heavy industry, and China's steelmaking level lagged behind the international level at that time.
Finally, in 1978, Longguo and Yinghuaguo cooperated to build the large-scale Shanghu Steel Plant in Shanghai, which is still in operation today.
If you lag behind, you will be beaten, and the same goes for the economic market. Faced with technological blockade, Miracle Group can only be the scapegoat. The steel plant is particularly important to Miracle Group and is also the foundation of heavy industry.
After Bao Junyi signed the contract with the United States Steel Company, he went to Wall Street and made an appointment to meet with Robert and Diana today.
However, Andrew Canevye was drinking coffee in his office, crossing his legs and reading the newspaper leisurely.
Suddenly, hurried footsteps were heard outside the door. "Love is always there, no matter how far we go. Can you please vote for me?"
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